The Bronson Settlement is a court ordered desegregation plan handed down in 1984 for the public schools of Cincinnati, Ohio. During the first three years of the plan the school system has undergone major changes in its leadership. This annual report for 1986-1987 evaluates the progress of the settlement and calls for the maximization of efforts to implement the plan fully. Problems and issues which must be considered are the following: (1) district personnel who are unfamiliar with the community; (2) lack of clarity of goals and the means to attain them; (3) paralysis of decision making; (4) incomplete long-range planning; (5) justification of financial allocations; (6) insufficient action to eliminate racial isolation; and (7) uniform application of evaluation procedures. Some elements of the plan, such as open enrollment and staff racial balance, have been partially successful. Descriptions and evaluations for the alternative education programs are included. (VM)